Samsung Galaxy S3 to retire, Galaxy S4 production scaled back

Samsung is planning to retire the Samsung Galaxy S3 earlier than planned, and will be scaling back production of the Samsung Galaxy S4.

According to industry sources, the Wireless Business Division of Samsung Electronics will reduce the monthly production of Galaxy S4 handsets by as much as 15 per cent, while the Samsung Galaxy S3 will be removed from sale.

Speaking to the Korean website ET News, the sources say the July order for Samsung Galaxy S4 parts is only enough to make 6.5 million S4 handsets. This is only around half the size of the order placed in May.

Samsung has reportedly noted that the company isn’t selling enough Galaxy S4 handsets to justify such large orders and has been accumulating parts in its inventory.

A recent report from JP Morgan indicating their fears over slowing Galaxy S4 sales caused the financial services firm to cut Samsung share price estimates by 9.5 per cent and the company’s 2013 earnings prediction by 9 per cent. These estimates caused Samsung prices to tumble.